A sales quotation is a seller's formal, priced offer sent to a prospective buyer — usually in response to an enquiry or an RFQ. It states exactly what the buyer will get, at what price, and for how long the offer stands.
What is a sales quotation?
A quotation turns a buyer's request into a concrete offer: line items, unit prices, totals, delivery terms, and a validity date ("valid until"). It is not yet a contract — it becomes an order only when the buyer accepts it, typically by issuing a purchase order.
What to include
- Seller details, quotation number, and date
- Customer details
- A line-item table with descriptions, quantities, unit prices, and amounts
- Subtotal, any discount, tax, and total
- Payment terms and delivery terms / Incoterms
- Validity period and lead time
Free Sales Quotation Template
Below is a free, blank sales quotation template. Download it, add your line items and prices, set a validity date, and send it to your customer. Download the sales quotation template
- Quote number, quote date, valid-until date and preparer
- Your company and customer details
- Payment terms, delivery lead time and currency
- Line items with quantity, unit price, discount % and amount
- Subtotal, tax rate, shipping, other charges and total
- Terms and customer acceptance signature
Sales quotation vs. proforma invoice vs. invoice
A quotation is an offer to win the order. A proforma invoice is a more formal pre-sale document the buyer uses to arrange payment or an import license. The final commercial invoice is issued after the sale to request payment.
Tips for a quotation that converts
Make the validity period realistic, be explicit about what's included and excluded, state the currency, and spell out payment terms. If you're quoting long payment terms to win a buyer, remember you can get paid upfront on those invoices so a generous quote doesn't strain your cash flow.
Related free templates: price list template, invoice tracker.
FAQ
What is a sales quotation? A seller's formal, priced offer to a buyer stating the goods, prices, terms, and how long the offer is valid. It becomes an order when the buyer accepts it.
What is the difference between a quotation and a proforma invoice? A quotation is an offer to win the order; a proforma invoice is a more formal pre-sale document the buyer uses to arrange payment or import approvals.
Is a sales quotation legally binding? Not on its own. It is an offer; a binding contract forms when the buyer accepts it, usually via a purchase order.
What should a sales quotation include? Seller and customer details, a quotation number and date, line items with prices, totals, payment and delivery terms, and a validity period.
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